Another week of sideways action, another week closer to creating the base needed for a healthy, substantial move higher or lower. You can see early last week we tested the lower end of the channel, and immediately found buyers down there. Interested to see how this eventually pans out. But so far, it’s digesting very nicely. TV chart link:
So like the S&P, the Nasdaq pulled back as well. But unlike the S&P, the Nasdaq’s pullback was shallow. It just made it back to the 20d, and I really wanted to see it closer to the 50d. So again, I think that the higher we go without a pullback to deeper areas, the more likely I am to look for short setups. Keep in mind, if at any time this week we DO pullback to...
The market gave the retrace back to the 50d like we were thinking it could. But the problem for me is that it didn’t spend any real time down there. Instead, it immediately bounced and we are already back at new ATHs. It really gives me concern about whether it can actually hold. Only time will tell, but moving forward, I will be pretty cautious with longs. As...